♪

cheryl: so where is the money going on wall street? well, right now it's flowing into banks. financials are flexing their muscles once again, taking stocks to a five-year high. hello, i am cheryl casone, it is the last hour of trading, and the countdown to the closing pell begins right now. good news overseas leads to buying in the u.s. china's exports jumping more than 14% in december, providing more evidence that growth is accelerating. stocks are off nearly the highs, but partly in the green, we are near session highs. the dow up 68, s&p higher by almost 9 points as you can see on your screen. now to those financials, this is the group it is a leading the pack right now, especially one stock. that is bank of america. take a look at bank of america, 11.79, this is one of the dow's best performers right now. investors have also plopped money into shares of goldman

sachs and morgan stanley. take a look, morgan stanley up almost more than 4%. jpmorgan chase winning as well. fireworks have been taking place in the currency market. thanks to ecb president mario draghi, the ecb held the line on rates, and he said the european economy will slowly get back to health in 2013. that did lead to a big spike in the euro, the euro with a 1% break, $1.32 versus the dollar. big news, as you can see, $1.32 as you can see on your screen for one euro. now, weak dollar, euro strength translates into an up day for gold. the precious metal rising more than 1%. that is about $20. there you go, up $20 and change. silver playing in this rally as you can see on the bottom of your screen, up a little more than 2% right now. well, last but certainly not least, take a look at oil.

crude back near $94 a barrel, we're at $93.89 right now. big move on this one. it's all about china. oil imports rising more than 7% last month, offsetting the bearish demand picture in the u.s. inventories which are sitting right now at five-year highs. now let's get to our floor show, because we've got traders standing by at the new york stock exchange, the cme group and, of course, the nymex. jonathan is standing by at the new york stock exchange. all right, jonathan, talk to me about the move today that we're seeing. again, a lot of interest in the financials, top performing sector in 2012. are we still bullish on this group in the next couple of months, three months? >> i'm bullish on that group. i've been bullish for a while there, and i think overall this market's going to have legs in it. when talking about the financials, i think that was the redheaded stepchild that everybody ran away from 2008, 2009, 2010. and now as rules and regulations have come into place, a little more transparency, i think people are warming up to this

sector once again understanding the profitability because they understand the companies a lot better than they did before in the past. i think overall this market has floated up to these levels here, and we've kind of stayed here. we've had a little fluctuation back and forth. but for the most part we've stayed at the higher end. clearly, we got kicked off bilal coe what, wells fargo coming out tomorrow, i think that's going to continue in the short run. cheryl: well, again, wells fargo is going to set the tone, certainly, for earnings season. charlie over at the cme, i want to talk about these moves we're seeing in gold and silver. seems like the currency market's really heating up today. do you think this is a sustainable move, though, for the gold and silver contracts? >> i do. you know, we saw the market take out both gold and silver take out key technical levels today. you took out the longer term 200-day moving average and really broke away from it, and then you took out some of the 10 and 20-day moving averages on

both of these. so i think really what's a big driver here, too, is what you had mention inside terms of the dollar, and it's interesting because gold hadn't been responding in the past month or so to the dollar trade either way. it's been more following the equity markets. so i think what you're seeing here today is some of the safe haven money come out of the dollar, your seeing it put back into work in terms of the equity markets. but again, you see the strong rally in crude, copper start to uptick and, again, a lot of this is associated with the numbers out of china. so you're seeing economies repairing. and i think people, again, don't get too far ahead of this, but you're starting to see people buying stuff in terms of inflation. cheryl: inflation, which may creep up later on this year, gentlemen, that's very true. >> well, it has been. cheryl: okay. >> i think you can see an uptick further into the year especially if you do start seeing world economies repair. cheryl: fair enough. jonathan, i want to pick up again on this oil story. certainly, there is a big dollar story behind the crude markup, but talk to me about

inventories. we've got plenty of oil, plenty of nat gas where is the upside to buying into the crude contract now? >> well, i think there's a lot of people sitting on the sideline, and that's what we've been seeing. weave kind of moves -- we've kind of moved slowly up. over the past five sessions, we've seen the settle be only 20 cents or less than the prior day. so this kind of sideways movement is keeping people on the sidelines for now and option volatility depressed because of that. natural gas, we've seen a slightly larger draw today, you know, but overall we didn't get the rally that we kind of expected, and i think that kind of leaves us in a potential to test the $3 level in the near term because of this, you know? there's so much supply out there. cheryl: i want to go back to jonathan for a moment at the new york stock exchange. i want to pick up on something that you said. you were talking about financials. we're getting into earnings season here, and i can't help but wonder with this concern about the financials which have

done so well up until now. with these numbers if we see more concern with the financials, if that's so high, why not sell 'em now? >> right. so what we're going to see, i think we're going to see this across the board as we've had the screen in the market, investors are waiting to hit the sell button. so if you get into earnings season and look at some of the projections moving forward and if you see some words in there that talk about exposure to europe and talk about how much cash is on hand or maybe some write-downs that weren't there, i think that might be some selling opportunities there. cheryl: gentlemen, thanks to all of you on this tuesday -- thursday, excuse me. i wish it was tuesday. gentlemen, thank you for being on the floor show today. >> thank you. cheryl: all right. president obama announcing today jack lew as his nominee for treasury secretary. rich edson is standing by at the white house with the latest including the slew of comments about lou, if you will. rich? >> reporter: that's right, plenty of that already, cheryl.

it is up to the united states senate whether or not to confirm jack lew. the white house is selling this as a transition. that, by the way, is construction for the or parade here, the inaugural parade, if you heard the loud crash. the transition that you have now from really a rescue job that treasury secretary geithner was asked to do at the beginning of the administration now to one of budgeting. jack lew, the budget chief in the clinton administration, in the obama administration in the white house is basically saying that's why they chose him, the mastery of the federal budget. >> jack knows that every number on a page, every dollar we budget, every decision we make has to be an expression of who we wish to be as a nation. our values. the values that say everybody gets a fair shot at opportunity. and says that we expect all of us to pull fill our or individual obligations. >> reporter: republicans say

that the lack of willingnesses to address entitlement spending and saying signals that the president -- this is senator mike lee -- will continue to pursue the same failed policies of the previous four years, higher taxes, more spending and more debt. it virtually guarantees the president will not compromise on entitlement reform. also hearing similar sentimentses from other republican senators and also from the left. senator bernie sanders is an independent from vermont, though he caucuses with the republicans, saying we need a treasury secretary to stand up to corporate america, and jack lew is not that man. this is a sampling, a handful of opposition we're seeing so far. you're going to need a lot more than this to stop jack lew's nomination in the senate as we roll out this confirmation process. cheryl: and all of that's going to come out in these hearings which are going to be interesting as they get underway in washington. rich edson, thank you very much live from the white house. the closing bell's going to ring, we now have 52 minutes to go. epr properties is not your

traditional real estate investment trust. no strip malls in this one, but they still pay big dividends. believe it or not o, movie theaters, schools. find out why they think that entertainment and education are the places to be, to find growth in 2013 and beyond. a conversation with epr properties' ceo and president david brain coming up next in a fox be business exclusive. keep it here. ♪ what are you doing?

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♪ cheryl: our power mover of the hour is nokia, shares up about 19% today, the hand seth maker has been losing market share especially when it comes to high-end phones, but nokia says strong sales helped the mobile phone business turn a profit in the fourth quarter raising hopes the worst could be over. as you can see from the chart, july not a good month for this company. perhaps they are turning the corner as you can see on your screen. well, chip makers are getting a pop on this move. want to bring in nicole petallides from the floor of the new york stock exchange who is

watching that group if particular. >> reporter: cheryl, they are so directly correlated. you're showing nokia there and good news for their human ya phones, and the stock is up 19%. so good news and good guidance there from knocke yea is really helping the group along. take a look at some of the other chip makers ear that are now related to these, and they're benefiting. skyworks solutions with an up arrow and rf micro up almost 4% on the day. of course, folk ya will continue to face intense competition from names like samsung and apple, but so far so good for them for the latest sales numbers that we've been seeing. i would keep a close eye on apple in particular as we talk about the cheaper iphone on the way, particularly for china, so that'll be something we'll continue to follow. back to you. cheryl: all right. we'll be talking about that this hour as well. thank you, nicole. well, pox office sales set a new record of almost $11 billion in 2012, so how do you cash in on

the success? well, it's kind of a second derivative play on movies. david brain, epr properties ceo and president, joins me now for a fox business exclusive. what you were doing, basically, is making a big play on movie theaters and complexes, big chunk of your fund. has it been working out for you? >> it's been working very well. we've been making this play in movie theaters for 15 years now, since the dawn of the megaplex theater all through the last decade plus, and it's done very well. box office set a record this year, but that's the eighth year since the turn of the millennium, so it's a rell occurrence. this is a very healthy industry, and it's been a great ride for our shareholders. cheryl: we are seeing those uberclass movie theaters where you can order alcoholic beverages and food and all that stuff. you're in education, you're actually investing in charter schools with the rise in popularity of charter or

schools. new avenue for you. is this a long-term bet, or or is this a test the waters type of move for you? >> well, we're really beyond the test the waters, more now into the long-term bet. we really like the category. it's very interesting because a lot of people don't connect maybe a movie theaterrer with a public school area. but this is really an emerging, new class of real estate that really did not have a go-to financing partner for the industry in the same way the large format theater which was really not comfortable with the, with kind of the retail center people that needed a special investor, we took the place there. so, too, for charter schools. and so it has a lot of connection to that very same essence of being a very strong, reliable, durable category. yet no real go-to player. so we stepped in to start to field this, and we've been at it now for well over five years and several hundred million dollars now we're close to, and we really like the category and expect it to be a major emphasis

for the company going forward. cheryl: i know you've tried some things that have not worked. you tried to get into wineries and that was something you had to pull back out of, hence the question about charter schools. but also you're in recreational parks, and i think this can be an interesting play, but are you worried about the consumer if there's more of a pullback, if the economy doesn't get better, unemployment stays high? are you worried that the water parks you're invested in, ski parks, skateboard parks whether there's going to be a problem there this year? >> well, you know, you always worry about the consumer, i guess, in a stressed economy, but the really great news about our portfolio is it generally is very, very recession-resistant. for example, with the tough economy we've been in, you know, box office setting a record year, set a record year in '09 in the toughest of economies. so, too, are water parks. it was a record year last year for them, and all of the price points particularly in ski is important. our ski properties are on average revenue per capita, you know, per day of about $60 as

opposed to about double that for resort or skiing. so we're really in the more leak ski hills that are accessible, and your total spend with pass, for your rental and your food is going to average about $60 which is a very approachable price point for the consumer. and so with our portfolio really targeted in at very accessible and affordable levels, we don't have the volatility that other people do maybe in the very high luxury end of things. cheryl: okay. your point is well taken on that. i want to talk about the performance of epr because over the last year, performance up above 6%, but the s&p gained more than 12%. if you are, indeed, recession-of proof in some of these areas whether it is movie theaters or whether it's ski parks, golf parks, whatever, why not the performance over the last year for epr? what happened here? >> well, you're right. we had about a 6% return on price, and we had about a 6-7% return on dividends, so we had about 12-1, but we were beat on

price by some of the larger indexes. and one of the reasons really is because during the summer of '12 we did have a charter school operator, charter public school operator who got crosswise with a state supervising authority in one of the major states they do wiz and ended up choosing some charters. and people who know our company were worried for a moment that this was something of a, an epidemic that would spread. but it was not, it was very situational and, i think, our stock price suffered in the mid part of the year but has recovered nicely. and we never missed a month or ran out of property during that whole proposition because with that operator, like we do throughout our portfolio, we crossed a fault. we motored true that, but there was some concern, and that's really what held us back in '12 and, i think, creates the opportunity for '13. cheryl which'll david brain, it's an desperation which is different for our viewers, so

we'll watch the fund's performance, obviously, throughout the year. thank you, david. >> thank you very much for having me. cheryl: we've now got 41 minutes to go until the bell rings. the hedge fund battle continues over ton one of the most hotly-contested stockings. herbalife, is it a pyramid screen or a solid investment? charlie gasparino going to break et down coming up next -- break it down coming up next. ♪

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♪ cheryl: has anyone taken a look at facebook lately? it is full speed ahead on this stock. what a run it has been. right now the social media giant is up another 75 cents as you can see on your screen, that is a gain of almost 2.5%, breaking that $31 mark, trading at best levels since july. what's the story? well, there is some hype

surrounding facebook's event coming up next tuesday. it's called come see what we're building. a facebook phone is among the items on the rumor mill, and investors are also buying into the idea that facebook can monetize its user base. it's almost a billion subscribers around the world, without sacrificing the user experience. big question for ceo mark zuckerberg. he's made tablets and smartphones a big priority. that's where users are spending more of their time, and last quarter facebook actually earned $150 million from mobile ads. prior to that, there was no money being made in mobile. now some analysts think facebook can make up to $2 billion, so that would really diversify their revenue stream and be a good thing for the stock. herbalife. shares went down. charlie gasparino here to break all of this down for us. >> they were down something like 4% today. they're off their lows now, so

the stock is bouncing back a little bit. there we go. oh, it's bounced back pretty good. it's been kind of a tough day. there's still a lot of questions with herbalife, we'll get into that in a minute. we have going to have dez walsh, the president, is going to be on today at 4:00. i'll be interviewing him about these questions, particularly the questions that the firm is a pyramid scheme. here are some of the interesting things bouncing around. herbalife has hired a very high-profile attorney in this whole battle, david boies. paying boies an eight-figure retainer. it's a big number. david boies, as you know, the guy who argued before the supreme court on bush v. gore, microsoft, big time guy, but that's what they're paying him. actman was barred from the meeting today. i'm going to ask why. [laughter] i think, you know, i think it's because he's not a shareholder, a short seller. who knows?

bill actman is sue baa diving in -- scuba diving in burma. don't ask k me why -- cheryl: now today? >> that's what he told me the other day. cheryl: intriguing. >> even from the far east or wherever that is, asia, even way out in the middle of no wewheree did issue a statement following the meetings where he said they basically misrepresented his critique of the company, and he's going to come up with some questions, some more questions he thinks herbalife should be asked. so that'll be interesting. we expect those questions any day now, okay? be nice if we get 'em before 4:00 when i'm interviewing mr. walsh, but, you know, he says they're coming momentarily s. and here's what actman really fears in terms of how they're going to come back at him. he feels they're going to hit him with a lawsuit. and lawsuit involving something called torturous interference --

cheryl: actman's afraid he's going to be sued by herbalife. >> yes. the charge is going to be that his attack on them is starting to hurt their business by causing districters to sort of -- distributers to sort of run for the hills. one major distributer has left, there's been a report on that. so that's where you get the torturous interference. that means he's interfering in their business in such a way that he's actually causing it to decline, implode, and he's doing it with mall race and, you know, recklessness by misrepresenting facts. it's kind of interesting, they talked around that during the meeting today. they didn't quite say that, but they used words like manipulation and misrepresentation, all those sort of legal catch words which makes you think they're going to sue. i'm going to put the question to mr. walsh, obviously, and see if he bites. it's kind of an interesting story. you know, what's going to be great about this interview, it's after the market has closed, it's after the market had enough

time to digest everything that was said today, and he's going to be here on fox business, 4:00. cheryl: let me ask you this, and i know this is going to be a great interview, and i'm certainly going to be tuning in, but the fight over the business model itself of herbalife which is what is under question here, i mean, the business model itself has worked up until this point. >> well -- cheryl: hasn't it? >> well, it depends on who you talk to. actman would say the business model which is a pyramid scheme has worked. what is a pyramid scheme? you don't actually sell enough of the product. what you cois you -- do is you give it to enough people to distribute the product, but they don't sell enough of the product, or the distributers don't sell any of the product. and at some point distributers will wake up, you're going to run out of distributers. and then the company will implode -- cheryl: like, what, 97% to have the company is distributers. >> 93%. cheryl: 93%, okay. >> you know the profits come from distributers, from distribution fees. so once you stop attracting

those distributers and their fees, you know, the company implodes. you can only keep going if you continue to sell the product, not just through the distributers' distribution fees because there's, obviously, a finite number of distributers. particularly if the product doesn't sell well. now, they claim that's baloney. they claim they're all over the world, maybe some of the distributers don't make a lot of money, but they still are selling enough and because of their expanse and their reach -- i mean, i believe they sell in china, they have distributers in china -- that, you know, even if it's a low base of sales, they could still make money. so we'll see. this is the debate that's going on. ackerman says those numbers are bad, that if you really look at the numbers, this thing is going to go to zero, he says. it's a pyramid scheme which is, by the way, a legal definition. the cftc cites that. now, they've looked at them and dropped the case, apparently, so it's not that easy. but i think there was a belgian case which said they are a

pyramid scheme. so there's a lot of stuff going on here, and pyramid scheme's a very legal term. ackerman looks at the numbers one way, they're describing the numbers the other way. i will tell you this, someone covered the financial crisis, this stuff takes a while to materialize. when dick fold came out and said that, you know, the company was okay in, like, june of 2008, people believed him. all of a sudden a month later -- cheryl: they fold. i remember that. >> right. he budget the bad guy he is -- he wasn't the bad guy he is now. about six weeks later, it was pretty obvious he was wrong, and the market moved. so we'll see. the sunlight will come out. cheryl: this is a big interview, coming up 4:00 p.m., charlie gasparino with the president of herbalife. all right, charlie, thank you. closing bell ringing 29 minutes from now. closing bell ringing 29 minutes from now. it is the race to the base currency more -- currency worth taking place around the world,

most notably in japan. how can you protect yourself and make money along the way? co-chairman and ceo of. like gold. he says that's going to preserve your purchasing power. that's coming up next in a fox business exclusive. ♪

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♪ >> i'm sandra smith with your fox business brief. stocks continued their upward trend as stronger than expected debt on chinese exports over shuttling a lackluster jobs report. right now the dow was up 73 points, up gain about one-half of 1%.

united nations is downplaying fears of a global food crisis as prices drop for the third straight month in december. according to the food and agricultural organization, food prices were down 7% last year from the year before. the agency also warning that bad whether could spark a repeat of rioting and unrest that it's part of the developing world in 2007-8. amazon is looking to take a bite out of apple itunes. launching a service that automatically gives customers free impi three of cds purchased through amazon for their cloud clear library. now we continue our "countdown to the closing bell" with cheryl casone. cheryl: here is your fox business market check. morgan giving shares a boost after the chinese economy is looking out. jpmorgan adds that the stock is up $6.45 with analysts saying

that mobile could make up 10% of baidu sales by the end of the year. and china's version of youtube jumping more than 9% today. there is the stock on your screen, up a dollar 91. the bank of england is hiding today to keep interest rates unchanged amid concerns of high inflation. district finance chairman and ceo says inflation could bill the bubble in the market and that is the time to get in and buy big joining me in a fox business exclusive. you see a bubblehead because of the printing of money around the world. >> right. everyone is printing. switzerland is printing. but they don't want their currency to go down, so they said it would print and that amounts of money to maintain currency against hours, euros, yen. europe is printing, japanese has said it will be printing. what happens when everyone prince? a bubble is created. cheryl: you're saying we should be going into hard assets than.

>> that's right. >> where does the money go? or is it going to flow to? well, that's a good question. it flows to the stock market in gold. a real-estate, anything with an international appeal that it does not matter what it is denominated in german money can go there. in the future it can be exchanged for what could be currents -- forces currency. cheryl: you're making the liquidity argument, fair enough. the adjusted monetary base, we will show you a chart to our viewers. it has basically been flat. this tells me there is no liquidity out there, we are not saying that money being printed, and, in fact, if you look at the end of the chart their is a little bit of a negative. there you go. >> right. cheryl: this tells me the opposite of what i am hearing from you about liquidity. >> let's think of a bathtub that gets filled up with water, and the fed has been taking a fire hose to fill up the bathtub. has been leaking.

where? greece, problems, shocks to the inflationary cycle, deflationary shocks, things to suck up liquidity, banks having to build tangible net assets. all of these things are sucking liquidity out, so the bathtub is not filling up. what happens when holes start to plug in the flood of water expands from here. you're going to see the bathtub filled. cheryl: you're telling me liquidity will come back in the united states despite what we have seen. >> in the world. cheryl: seeing that. >> look at new york city real estate. cheryl: you're talking about wealthy investors going for things. of -- art and real estate and things like that. >> but liquidity in the following year before throughout the economy, throughout the middle size investors. cheryl: let's talk about that. i'm curious. not going to be raising interest rates, the fed says. we'll see. what happens when we do start to see inflation toward the end of

the year? when the fed comes back and says, actually, we are going to have to raise rates. what does that do to the hard assets you recommend it that they buy now? >> 2-year tap 10-year treasurys bread has increased to one of the largest in a while. people are starting to anticipate that over the next few years there is a high degree of chance the fed will increase rates and there will be inflation. what do you buy, how you protect yourself? the individual investor, buy your house, long-term fixed-rate mortgage. the nominal appreciation of your house, apartment should generate returns over time versus inflation. a good hedge. cheryl: fair enough. >> by gold. cheryl: okay. >> by real estate, an apartment and rent it out. i like that one. i bought a small one in miami. rented in one week. an international market. cheryl: if someone has the cash to do that. but gold. gold has not been performing very well, surprisingly so.

now we are seeing pressure in the currency market that could be bad news for gold. >> well, gold is a tough commodity because it has no earnings power. ultimately you want to buy the stock market because it can increase earnings and pass along. the number of stocks and types of investments in the stock market you can make another could basis, anyone can make him, and make money. cheryl: going back to the risk and thinking of buying modern art along with courses and yachts, that kind of capital. len tannenbaum, thank you very much. >> thank you. cheryl: the closing bell will ring in 18 minutes. many smart investors are looking at auto sales as an indicator for the health of the economy. my next guest is saying that one of them is his number one moneymaker. indicators that he thinks you should be watching. joining me in a fox business exclusive coming up. he has more than three and a half billion dollars in assets under management. you don't want to miss what he has to say.

that's coming up next. ♪

♪ cheryl: here is your fox business market check. financials best performing sector out of the bunch today helped out by positive comments from ecb president, the bank led the market higher in 2012, best sector of the year, number two performer thus far in 2013, as the momentum continues. take a look. and check out these names within that sector hitting new size. ubs, hsbc, goldman sachs.

well, to closing retailers are not feeling the holiday cheer. let's go back to nicole petallides at the new york stock exchange for more on what unfortunately is a big downside surprise for retailers in december. >> reporter: it is true. it is true. sometimes you shop till you drop. in some cases, like urban outfitters to the impressed wall street with their numbers. on the other hand, a keen retailers', arab post all, and they have given a disappointing profit outlook. keeping a close eye on american eagle outfitters. also another one in the same sort of round, but profit forecast, not able to really give that a boost either. i wanted to take a look here at the little blue box, tiffany and company. there it is, down about 5 percent today. sales for the holidays, not good news. and worldwide. sales increased about 4%. overall numbers were disappointing for analysts. this is why we are seeing the

down arrow which is pretty dramatic. you talk about the down arrow of over 5%. not a good day, especially when you have other names like urban outfitters really soaring. cheryl: amazing how many times you and i can cover tiffany together. thank you very much. we love talking about the stock. my next guest is watching market indicators to you may not consider it. what is on his radar? barry james, james investment research and james advantage funds president joins me now in a fox business exclusive. you say that the fear index, you say that it is flawed. if we are not watching it, what are we watching? >> we think there is of much broader way to look at it than just the vix. it teams to get to extremes and stay there. right now it is passive, not giving you much of the nation. people are kind of -- cheryl: we are sleeping better at night. what else should we be watching?

>> the important things to monetary policy. when we have quantitative easing , the last several times the market went up which is a positive. the sentiment, other sentiment readings from aa, double i, plants versus cost of premiums on those sorts of things, starting to show a little bit more optimism than they had which is a little bit worse. looking at the economy itself, we see positive and negative signs. kind of a mixed bag. it is not really giving us a lot. we put all this and a package of over 100 indicators that we look at to measure risk levels. they're saying less risk at the end of the year. starting to creep up, but not anywhere where you need to sell. cheryl: making some interesting moves away from bonds. many people have. more into equities, so the risk trade for 2013, you're ready to take that chance based on your 100 indicators. >> right. what we see is kind of 2-fold. risk is lower and stocks.

that is why the move there, but higher risks and bonds. we are not out of the woods, you know, in terms of the bond market maybe even going lower. that is not a negative. that is positive. we are in a time right now where rates are having a bit higher. cheryl: and you still got -- i mean, your stocks and bonds at this point, the ratio is still fairly on track. let me ask you, you know, one of the stocks you like and talk about is lockheed martin. i bring this up because of all the talk about sequestration, defense cuts. we still don't know what will happen. lockheed martin is a stock that many ran away from. you pick this. why? >> that is part of the reason. we tend to go against the crowd. we look for something that is cheap, good earnings, and the stock has a record of going up, the stock price. if you have those three -- and lucky as of three of those. they have a good dividend yield

and have been buying back their own shares. cheryl: they have lines of business that can protect them. talk about triple draws ending completely. no american personnel in afghanistan. that does not bother you? >> always a concern. cutbacks in defense will have some impact on them, but they have a broader array, and they're not just defense-related cheryl: you're going for underdogs because you also like intel, one of the worst performers for 2012. is that pc not dead? i was under the assumption that it was. >> it is not. they are talking, rumor, talking with apple to make some sort of watch, smart watch and use theirs. there are a lot of sales, and i think we have been seeing chip sales rising, the last numbers that were coming out. too soon to call intel dead. cheryl: going more into mobile. pushing them up. they realize the pc maybe, maybe.

i do want to get to your number one moneymaker. i kind of ts this earlier on. it is an auto maker. >> right. it does not sound too glamorous. but ford is back. they came out today and announce their doubling their dividend. and did not know about it when i gave you the pick, but. cheryl: i tested that fact. towhead. >> the average car's on the road for 11 years now, affordability has -- the cars have become much more affordable for the average person. you are seeing sales rising. all of these things fit in together with consumers not being as debt-burdened as they were. they want something, a new car. cheryl: the phenomenal job with that company. thank you very much, barry james. good to have you here. james investment research and james advantage funds president. closing bell is running right now in seven minutes. take a look at the dow up 81 points. not bad.

this thursday. at least tomorrow is friday. we are probably, probably going to be closing and a 5-year high today of these markets. six minutes now to go. a new deal between a fast food chain and soft-drink company in china putting shares of both companies way up, one to a record high. which two companies are bubbling higher today. after the break. ♪ droid dna augmentation initiated. vision expanding to a 5-inch 1080p hd display and camera. touch acquiring nfc. hearing evolving with beats audio. wireless charging activated. introducing droid dna by htc. it's not an upgrade to your phone. it's an upgrade to yourself.

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[ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforwa guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. cheryl: pepsi will be the exclusive soft drink provider in china. including pepsi cola, china's best selling cola drink. now, the pair already have successful deals in other bk

markets like the united states, latin america, russia, turkey, but this is really the first jump together in the chinese market. shares of burger king are at an all-time high from its market debut june of last year, up 1.55% today and, again, pepsico moving higher as well. big day for the markets, pushing five-year highs. ash webster and lori rothman going to take you to the end. ashley: we've within seeing this market rise -- we've been seeing this market rising ever so slowly -- lori: second straight day of gains, pushing multiyear highs here. the bell's just moments away, so we'll see where we close up shop. ashley: let's go to nicole petallides at the new york stock exchange. volatility continuing to come out of this market. the vixx continues to drop. chel was just talking about that a short time ago. >> reporter: right, affectionately known as the fear index, so where is the fear? the fear gauge is below 14 percent fifth